Slide 1: Second Quarter 2014 Results
(Based on Second Quarter 2014 Results) August 5, 2014 i2)| eFax’ eVoice’ &X|FuseMail’ campaigner’ MiKeepltSafe’ @onebox’ Bs
Slide 2: Safe Harbor for Forward-Looking Statements
j2)) Safe Harbor for Forward-Looking Statements ~ Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2014 Financial Guidance. Such forward- looking statements are subjec
Slide 3: Risk Factors
(j2)) Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and the related
Slide 4: Q2 2014 Results
(j2)) Q2 2014 Results j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE
Slide 5: Q2 2014 Results
j2)) Q2 2014 Results Cloud Services IP Licensing"! Total Cloud Media j2 Consolidated In Millions $ Margin $ Margin $ Margin $ Margin $ Margin Revenues” $105.3 $12 $106.5 $38.2 $144.7 |Adj Non-GAAP Gross Profit $86.1 81.0% $1.2 100.0% $87.3 81.2% $33.8 88.2% $121.1 83.1% |Adj Non-GAAP Operating Profi
Slide 6: 2nd Quarter Highlights
( j2 )) 2" Quarter Highlights j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE
Slide 7: Q2 2014 Achievements
Q2 2014 Achievements Total j2 Global * Set a quarterly revenue record of $146M “) * Revenue up +$18M, +14%, YoY (? * June revenue was a record ~$53M () * Raised ~$400M in convertible debt * Non-fax revenue comprises +52% of total revenue (current annualized run-rate), while fax revenues grow * Cross
Slide 8: Business Cloud Services
( i2) Business Cloud ~ Services j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE
Slide 9: Cloud Subscription Revenue Growth by Service
Cloud Subscription Revenue Growth by Service Current annualized revenue run-rate versus prioryear * eFax® & eVoice® flagship brands are best sellers and growing organically * eFax® +4% @QeFax’ f (( eVoice * eVoice®/eReceptionist®+17% * Online Backup +600% o Ke ep!tSafe’ * Email +42% * Hosted Email +
Slide 10: Online Backup
(j2)) Online Backup EiKeep!tSafe sivedrive. Current annual revenue run-rate nearing $60M (1) Q2 actuals YoY +480% / QoQ +50% (1) Healthy customer segment ARPUs - KeepltSafe® pure SMB; Livedrive® SMB & Individual * KeepitSafe ARPU ~$1,000/year * Livedrive ARPU ~$100/year * FINRA, KeepltSafe added fea
Slide 11: Record Cancel Rate
Record Cancel Rate * Record Low Q2 2.0% * eFax®& eVoice® driving improvement Cancel Rate) 3.0% Record 2.8% 2.6% = 2.6% “ 2.5% 2.58 2.4% 2.4% 9 4% 2.3% 238%, m2011 2.3% 2.2% 2.2% 2.2% 2012 2.3% 21% 2.0% ™ 2013 2.0% —_ 2014 1.8% 1.5% + 1 aa a a3 aa (1) Cancel Rate is definedas cancels of Cloud Busines
Slide 12: Digital Media
(j2)) Digital Media j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE
Slide 13: Q2 2014 Media Highlights
a) @) @) 3) », DAVIS 2)) Q2 2014 Media Highlights ZIFF j2 M&A strategy proving itself out * Business is scaling * Better monetization of traffic and cost containment * Revenue growth of ~$7M, +22%, vs. Q2 2013 > 50% EBITDA flow thru in 2014 ‘) EBITDA margin growth to ~29% vs. ~15% for Q2 2013 “) Vid
Slide 14: Q2 2014 Media Highlights (Continued)
Q2 2014 Media Highlights (Continued) nN IGN NX [4 IGNLIVE + IGN set records during its weeklong coverage of E3 |") * Record site visits (18.8M) and video views (68.3M) * Delivered 96.4M video views on YouTube/IGN, and 300k users were tuned in at any moment to IGN’s 12 hours of live coverage. * Subsc
Slide 15: Legal Structure & 2014 Financial Guidance
( j2)) Legal Structure & - 2014 Financial Guidance j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE
Slide 16: Legal Structure & Financing Overview
(j2)) Legal Structure & Financing Overview * Legal reorganization effectuated in conjunction with June 2014 convertible note offering * Aligns j2 legal and management structures j2 Global, Inc. = Issuer: New $402.5mm Senior Unsecured (Hold Co) Convertible Notes due 2029 = Borrower: $40mm Revolving C
Slide 17: j2 2014 Guidance: Reaffirming
j2 2014 Guidance: Reaffirming Revenues $580M - $600M Adjusted Non-GAAP EPS (1) $3.23 - $3.47 (1) Adjusted Non-GAAP earnings per diluted share for 2014 excludes share-based compensation of between $10 and $12million, amortization of ‘acquired intangibles and the impact of any currently unanticipated
Slide 18: Supplemental Information
( i2) Supplemental Information j2),| Cetax’ (Voice Rrusemait’ campaigner’ MKeepiiSafe’ Wonebox BREE 18
Slide 19: Financial & Other Metrics: Business Cloud Services
(j2 Financial & Other Metrics: Business Cloud Services j2 Cloud Services 2013 2014 at a2 3 a4 at a2 Total GAAP Revenues $90,739 $108768 $94,390 $96,207 $100,830 $106,523, Adjustment!" so ($12,572) so so $541 $985 Total Adjusted Non-GAAP Revenues $90,739 $96,196 $94,390 $96,207 $101,371 $107,509 Fixe
Slide 20: Financial & Other Metrics: Digital Media and Consolidated
2013 2014 ar @ a3 aa ar @ Web Traffic ®) Visits am 358 et eat sat 607 Pageviews 4,249 1,897 2,002 2197 2021 1,968 Total GAAP Revenues = $113,617 $141,361 $127,788 $138,035 $134,126 $144,744 A dustrents? ($44 (813.920) (s814) (8 $641 $966 Total Adjusted Non-GAAP Revenues 5 $113,573 $127,441 $126,974
Slide 21: GAAP Reconciliation Free Cash Flow & EBITDA
(j2 2)) GAAP Reconciliation Free Cash Flow & EBITDA ($ in millions) Free Cash Flow (1) ars 23 9313, sts arg a2tg Net cash provided by operating activities, $40,048 $68,973 525.889 $8446 37.208 $84.512 Less: Purchases of property and equipment (91.983) ($4.098) (95.128) (7511) (52.998) (1.087) Less:
Slide 22: Margin Contribution Adjusted Non-GAAP
(j2 Margin Contribution Adjusted Non-GAAP In Millions 143 243 Q3"13 aa'13 i414 244 Cloud - Services Revenues $2899 $939 $934 $946] $994 $1063 Gross Profit $734 $761 $761 S769] $805 $861 Gross Profit % 82% 81% 82% 81%] 81% 81% EBITDA” $442 $470 $464 $480] $470 $5214 EBITDA% 49% 50% 50% 51%] 47% 49% M
Slide 23: Q2 GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS
j2 Q2 GAAP Reconciliation Adjusted Non-GAAP Earnings & EPS ($ in thousands) [THREE moUTis BIDeD JwNe-D 2018 [THREE MOUTHS BIDeD JUNE 9 2019 Acai Peston 1) alate Ta Experse o} C) Shectered Ineysin (2) are) fom Adjusted sreetaees ) Part Adutes GAAP Conpercsion Casts Aversion PcrYers | Non-GAAP GAAP Co
Slide 24: GAAP Reconciliation EBITDA Q2 2014
($ in thousands) GAAP Reconciliation EBITDA Q2 2014 EBITDA CONSOLIDATED CLOUD & MEDIA Q2 2014 (1) Se fon anf oo Fe = Es ‘Subscription IP Licensing ® 7 -_ priate =e IWetineome (ross) wares ea mae cr EATS (ea) Er lother expense income), net (110) E (110) 79, (186) : 136) Interest expense income), net
Slide 25: i2)| eFax’ eVoice’ &X|FuseMail’ campaigner’ MiKeepltSafe’ @onebox’ Bs
i2)| eFax’ eVoice’ &X|FuseMail’ campaigner’ MiKeepltSafe’ @onebox’ Bs